Demolition House to STR

[Daniel Zimmerman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $25,000
Cash invested: $120,000

Ordered a TRO (Temporary Restraining Order) To stop demolition, used hard money lending, pulled permits, full rehab, furnished as STR, cash out refi $175k

What made you interested in investing in this type of deal?

I like big rehabs with huge upside, this deal had exactly that

How did you find this deal and how did you negotiate it?

Off market, seller in financial crisis. Wholesaler negotiated with bank to remove $140k lien, asked me what I was willing to pay.

How did you finance this deal?

Cash purchase, Hard money rehab

How did you add value to the deal?

Complete Rehab

What was the outcome?

Everyone was happy in this deal. Seller, Wholesaler, Hardmoney lender, Refi Lender, Exwife, Myself, Contractors, and Neighbors.

Lessons learned? Challenges?

My ex wife and I were married when we started this deal and sorting out our divorce in the middle of the rehab, now were business partners. Lessons learned: Do the right thing always, remove personal emotion from business and you will find success, and triple your time line when pulling ALL permits.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lisa Zimmerman